Labour cost Sums

1.From the following information calculate the labour turnover rate and labour flux
rate . number of workers at the beginning of the year is 3800,number of workers
at the end of the year is 4200.During the year 40 workers leave while 160 workers
are discharged.600 workers are required during the year of these 150 workers are
recurred because of leavers and the rest are engaged in accordance with an
expansion scheme.

2.From the following data provided to you ,find out labour turnover rate by
applying flux method , replacement method and separation method. Number of
workers on payroll 1) at the beginning of the month 500.at the end 600,during the
month 5 workers left ,20 persons were discharged and 75 workers were recruited
of these 10 workers were recruited in the vacancies of those leaving, while the
rest were engaged for the expansion scheme .

3.The Cost Accountant of Y ltd has computed labour turnover rates for the quoted
ended 31st march 2017 as 10%,5%,3% respectively under flux
method ,replacement method and separation method .if the number of workers
replaced during the quarter is 30.find out the number of workers recruited and
joined and workers left and discharged.

4. A work measurement study was carried out in a firm for 10 hrs and the
following information was generated units produced -350,idle time-
15%,performance rating -120%,allowance time-10% of std time .what is the std
time for the task.

5.A worker is paid 0.50p per hour and the 5 days working week contains 42
hours, the daily allowance for approved absence from his place of work,
maintenance of machine etc… is 12 minutes and his job card, show that his
time chargeable during the week to various cost centres is as follows .job
no.305 is 20 hours, job no.310 is 10 hours, job no.320 is 8 hours .time
unaccounted for is caused by a power failure. Show how his wages for the week
would be dealt with in cost accounts .
6.Calculate the normal and over time wages variable to workman from the
following data.mon-8 hrs,tues-10 hrs ,wed -9 hrs,thurs-11 hrs,fri-9 hrs ,sat-4
hrs .normal working hrs 8 hrs per day ,normal rate rs.1 per hr overtime rateupto 9
hour in a day is single rate and over 9 hrs in a day @ double rate or 48 hours in a
week is single rate and over 48 hours in a week @double rate whichever is more
beneficial to workman.

7.The extract from the payroll of a company gives the following information: no. of
employees at the beginning of 2009-240,no.of employees at the end of 2009-
310,no.of employee discharged during the year-5,no.of employees resigned
during the year -26,no.of employees replaced due to quits and discharges-
25.calculate the net annual labour turnover rate of the company and comment on
it.

8.Calculate the earnings of worker from the following information as under a.)time
rate method b.)piece rate method c.)halsey plan and d.) rowan plan from the
following information given: standard time -30 hours, time taken -20 hours hourly
rate of wages is rs.1 per hour plus a dearness allowance @0.50 p. per hour
worked.

9. Calculate the earnings of a worker under: (a) Rowan Premium Bonus system
(b) Halsey Weir Premium Bonus System (40 per cent to worker) from the
following particulars: Hourly rate of wages (guaranteed) Re.0.75. Standard time
for producing 1 dozen articles is 3 hours. Actual time taken by the worker to
produce 20 dozen articles in 48 hours.

10.In an engineering works , the std time for a job is 16 hrs, and the basic wage is
rs.1 per hr . A bonus scheme is instituted so that worker is to receive his normal
rate for hrs actually worked and 50% bonus for the time saved . materials for the
job cost rs.20 and over heads are charged on a basis of rs.2 per labour hr.
calculate the wages and effective rate of earning per hr if the job is
completed .1.)in 12 hrs 2.) in 14 hrs. also ascertain factory cost of job on the same
basis.

11.Calculate the amt of wages and bonus earned by the worker

Name :j.jain –clock no. 214
Commenced job – Saturday 23 rd june 8 am
Finished job- Wednesday 4th july 5 p.m
No.of pieces of work given out -808
No.of pieces of work passed-718
 Workers rate –rs.2 per hr
Time allowed – 10 per hr
Bonus 50%- of time saved
Pay week commences at 8 am on Wednesday. Assume that the employee
worked on 8 hrs a day and no overtime ;Saturday , 4 hrs.

12.Calculate the earnings of workers A and B under straight piece rate system
and taylor’s , differential piece rate system from the following particulars :
Normal rate per hr. rs .2.40
Std time per unit 30 sec
Differentials to be applied .
80% of piece rate below std . 120% of piece rate @ are above std
Worker A produces 800 units per day , worker B produces 1000 units per day .

13. What will be the earnings of a worker @ 55p per hr when he takes 140 hrs to
do a volume of work for which the std time allowed is 200 hrs ?the plan of
payment of bonus on a sliding scale is as under ;
a.) within the first 10 % saving in std time ,the bonus is 40% of the time saved
b.) within the second 10% saving in std time , the bonus is 50% of the time
saved
c.) within the third 10 % saving in std time ,the bonus is 60% of the time saved
d.)within the fourth 10% saving in std time ,the bonus is 70 % of the time saved
e .)for the rest bonus is 75% of the time saved .

14.)A workers takes 9 hrs to complete a job on daily wages and 6 hrs on a
scheme of payment by result, his daily rate is 0.75p an hr; the material cost of the
product is RS.4and the overheads are recovered @150%of the total direct
wages. calculate the factory cost of the product under :
a.)piece work plan b.)Rowan plan c.)Halsey plan

15.)Using the following data discuss and illustrate the halsey and the rowan
premium bonus systems bringing out their comparative merits and demerits ;
Time allowed 48 hrs
Time taken 40 hrs
Rate per hr rs.1

16.) Production sections of a factory working on a job order system pay their
workers under the rowan premium production bonus scheme . workers are also
entitled to a dearness allowance of rs.24 per week of 48 hrs, worker’s basic wage
is rs.4 per day of 8 hrs and his time sheet for a week is summarized below
Job no Time allowed Time taken
1 25 hrs 20 hrs
2 30 hrs 20 hrs
Idle time ---- 8 hrs
Find the worker’s earnings and the amounts to be charged to each job and to
overhead .

17.) During first week of April 2010 the workman Mr. Kalyan manufactured 300
articles. He receives wages for a guaranteed 48 hr week at the rate of rs.4 per hr.
The estimated time to produce one article is 10 minutes and under incentive
scheme the time allowed is increased by 20%.Calculate his gross wages
according to
1.)piece –work with a guaranteed weekly wage
2.)Rowan premium bonus , and 3.) Halsey premium bonus 50% to workman

18.) On the time basis of the following information, calculate the earnings of A B
under straight piece –rate system and Taylor’s differential piece rate system ;
Std production --- 8 units per hr .
Normal time rate ----rs.0.40 per hr
Differential’s to be applied ;
80% of piece rate below std .
120% piece rate or above std .
In a nine-hour a day A produces 54 units and B produces 75 units .

19.From the following data, calculate the monthly remuneration of three workers
A,B,C.
1.) standard production per month per workers is 1000 units .
2.) Actual production during a month :
A-850 units ,B- 720 units C-960 units
3.) piece work rate per month of actual production ---0.20 p
4.)Dearness wage --- rs.0.50 per month (fixed )

20.)From the following particulars work out the earnings for the week of a worker
under :
a.)straight piece rate
b.)Differential piece rate
c.) Halsey premium system
d.)Rowan system
no. of working hours per week 48
wages per hour Rs.3.75
rate per piece Rs.1.50
normal time per piece 20 minutes
normal output per week 120 pieces
actual output for the week 150 pieces
Differential piece rate :80% piece rate when output is below standard and 120%
when above standard .
21.) A worker under the Halsey method of remuneration has a day rate of rs.12
per week of 48 hours plus a cost of living bonus of 0.10 p per hour worked .He is
given an 8 hour task to perform , which he accomplishes in 6 hours .He is allowed
30% of the time saved as premium bonus. what would be his total hourly rate of
earnings and what difference would it make if he was paid under the Rowan
method

22. In a factory group of bonus system is in use which is calculated of earnings

under time rate. Following particulars are available for a group of 4 workers P, Q,
R and S:

i. Output of the group 16000 units.

ii. Piece rate per 100 units Rs. 2.50.
iii. Number of hours worked by
i. P-90; Q-72; R-80; S-100
iv. Time rate per hour
i. P- Rs.0.80; Q-Rs.1.00; R-Rs.1.20; S-Rs. 0.80.

23. In a manufacturing concern 20 workmen work in a group. The concern follow

a group incentive bonus system whereby each workman belonging the group is
paid a bonus on the excess output over the hourly standard production of 250
pieces , in addition to his normal wages at hourly rate . The excess of production
over the standard is expressed as a percentage and two-thirds of thus percentage
is considered to be the share of workman and is applied at the national hourly rate
of Rs. 6.00 (consider only for the purpose of computation of bonus)

DAYS MAN OUTPUT

HOURS
WORKED
(in
pieces)
Monday 160 48000
Tuesday 173 53000
Wednesday 164 40000
Thursday 168 52000
Friday 160 46000
Saturday 160 42000
You are required to:

i. Workout the amount of bonus for the week and the average rate at which
each workman is to be paid the same.
ii. Compute the total wages including the bonus payable to Ram jayadev who
worked for 48hrs at a hourly rate of Rs. 2.50 and Francis Williams had
worked for 52hrs at an hourly rate at Rs.3.00.